NanoString Technologies (NASDAQ: NSTG) and Quotient Limited (NASDAQ:QTNT) are both small-cap medical companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, risk, profitabiliy, dividends and earnings.

Volatility & Risk

NanoString Technologies has a beta of 1.07, meaning that its stock price is 7% more volatile than the S&P 500. Comparatively, Quotient Limited has a beta of 1.31, meaning that its stock price is 31% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for NanoString Technologies and Quotient Limited, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NanoString Technologies 0 1 1 0 2.50
Quotient Limited 0 0 2 0 3.00

NanoString Technologies presently has a consensus target price of $20.00, indicating a potential upside of 29.37%. Quotient Limited has a consensus target price of $19.00, indicating a potential upside of 259.85%. Given Quotient Limited’s stronger consensus rating and higher possible upside, analysts clearly believe Quotient Limited is more favorable than NanoString Technologies.

Valuation & Earnings

This table compares NanoString Technologies and Quotient Limited’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
NanoString Technologies $89.86 million 3.73 -$42.26 million ($2.48) -6.23
Quotient Limited $22.23 million 3.41 -$64.60 million ($3.01) -1.75

NanoString Technologies has higher revenue and earnings than Quotient Limited. NanoString Technologies is trading at a lower price-to-earnings ratio than Quotient Limited, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

89.5% of NanoString Technologies shares are owned by institutional investors. Comparatively, 38.6% of Quotient Limited shares are owned by institutional investors. 24.4% of NanoString Technologies shares are owned by company insiders. Comparatively, 29.0% of Quotient Limited shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares NanoString Technologies and Quotient Limited’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NanoString Technologies -57.13% -6,777.29% -46.14%
Quotient Limited -382.71% -1,303.22% -77.72%

Summary

NanoString Technologies beats Quotient Limited on 7 of the 13 factors compared between the two stocks.

NanoString Technologies Company Profile

NanoString Technologies, Inc. develops, manufactures and sells intuitive products that unlock scientifically valuable and clinically actionable biologic information from minute amounts of tissue. The Company is engaged in the development, manufacture and commercialization of instruments, consumables and services for profiling the activity of hundreds of genes and proteins simultaneously from a single tissue sample. The Company’s nCounter Analysis System is an automated, multi-application, digital detection and counting system, which directly profiles hundreds of molecules simultaneously using a barcoding technology. The Company markets systems and related consumables to researchers in academic, government and biopharmaceutical laboratories for use in understanding fundamental biology and the molecular basis of diseases, such as cancer, and to clinical laboratories and medical centers for diagnostic use.

Quotient Limited Company Profile

Quotient Limited is a diagnostics company. The Company focuses on blood grouping and donor disease screening, which is referred to as transfusion diagnostics. It is engaged in developing, manufacturing and commercializing conventional reagent products used for blood grouping within the global transfusion diagnostics market. It is engaged in developing MosaiQ, which is its technology platform. The Company develops, manufactures and commercializes the products, including antisera products, reagent red blood cells, whole blood controls and ancillary products. Its antisera products contain antibodies used to identify blood group antigens. Its antisera products are monoclonal antibodies manufactured from master cell lines it owns. Its reagent red blood cells products are composed of human red blood cells formulated to enable the identification of blood group antibodies. The Company develops, manufactures and sells conventional reagent products to original equipment manufacturers (OEMs).

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